Such measures come at a time when Hong Kong is competing against rival hubs such as Singapore and Dubai to attract SFOs and other wealth management entities.

Hong Kong’s government has approved tax and other measures to encourage single-family offices.

Late last year, the Asian city introduced a bill providing tax concessions for investments managed by eligible single-family offices, with retrospective effect from 1 April 2022. Called the Inland Revenue (Amendment) (Tax concessions for family-owned investment holding vehicles) Bill 2022, it exempts family-owned investment holding vehicles and their portfolios of special purpose entities from tax on transactions carried out by a Hong Kong-based family office.

Authorities in Hong Kong have approved the package of measures, effective 19 May this year. 

The qualifying criteria for single family offices includes a minimum of $30 million of assets (HK$240 million) with 95 per cent beneficial ownership, two full-time employees in Hong Kong, $255,000 yearly operating expenses in Hong Kong and not more than 50 holding vehicles.  

Such measures come at a time when Hong Kong is competing against rival hubs such as Singapore and Dubai to attract SFOs and other wealth management entities.

"This pivotal development will undoubtedly serve as a catalyst for elevating the competitiveness of Hong Kong’s family office industry. We are witnessing an inflection point in our sector, a transformative moment that promises to reshape the landscape of wealth management and bespoke financial services. The forward momentum being generated by these changes is not just promising, but essential,” Chi-man Kwan, group CEO and co-founder of Raffles Family Office, said. 

"We wholeheartedly welcome more forthcoming policies from the government and regulators. It is this kind of proactive, strategic vision that will enable Hong Kong to continue to prosper and thrive as a global financial hub. These policies are not only beneficial for our industry, but they also reflect a broader commitment to fostering economic growth and innovation. This is an exciting time for the family office industry, and we look forward to playing a pivotal role in shaping its future.”